PACIFICORP REPORTS 1991 EARNINGS
PACIFICORP REPORTS 1991 EARNINGS PORTLAND, Ore., Feb. 12 /PRNewswire/ -- PacifiCorp (NYSE: PPW)
today reported 1991 earnings of $1.86 per share -- up 1 cent from the $1.85 reported for 1990.
Consolidated annual revenues rose 4 percent, or $169 million, to $4.0 billion, as Electric Operations, Mining and Resource Development (NERCO) and Telecommunications (Pacific Telecom) segments produced year-to-year gains. Financial Services' revenues declined as a result of reduced business activity. Electric revenues increased $67 million, or 3 percent, to $2.3 billion reflecting a 3 percent gain in total kilowatt-hour sales. NERCO's revenues rose 11 percent, or $92 million, to $920 million, including $58 million associated with the gain on a sale of a 25-year natural gas supply contract and $28 million from the settlement of a coal contract dispute. Pacific Telecom's revenue gained $42 million to $724 million as a result of higher out-of-period revenue adjustments and the August 1990 acquisition of a Wisconsin- based, local telephone exchange company, partially offset by a decline in capacity sales on the North Pacific fiber optic cable project. As of Dec. 31, 1991, 41 percent of the cable's total capacity was sold to nonaffiliated entities -- 31 percent of which was sold in 1990 and 10 percent in 1991. Income from operations for 1991 increased $35 million, or 3 percent, to over $1.1 billion -- reflecting increases for Electric Operations of 5 percent, or $38 million, to $783 million; NERCO of $17 million, or 10 percent, to $184 million; and, Pacific Telecom of 4 percent, or $5 million, to $160 million. Net income for the year was $507 million, up 7 percent, or $33 million. Earnings' contribution on common stock rose 6 percent, reaching $481 million. Electric Operations and NERCO produced earnings contribution increases of $12 million and $3 million, respectively, while Pacific Telecom's earnings contribution declined $3 million. Given the current price environment for natural gas, NERCO expects to post a net loss for the first quarter of 1992. Additionally, NERCO continuously monitors the carrying value of its oil and gas properties, and in light of the sharp decline in natural gas prices in early 1992, NERCO could be required to record a non-cash charge. The amount of the charge, if any, would be determined based upon several factors including the price of gas and reserve balances, but could be in excess of $100 million to NERCO on a pre-tax basis if prices remain at these historically low levels. Financial Services' earnings' contribution declined $1 million to $7 million. Losses at the Corporate level were lower in 1991 as a result of reduced operating losses stemming from the sale of certain noncore businesses and increased consolidated tax benefits. The average number of common shares outstanding for the year was 258.4 million, an increase of 14 million, or 6 percent, from 1990's level. The increase stems from issuing 5 million shares in a March 1991 public offering, using original issue shares in conjunction with the dividend reinvestment and employee stock ownership plans and issuing 1 million shares to the public in the fourth quarter of 1991. Turning to fourth quarter 1991 results, PacifiCorp's earnings per share of 60 cents were up 15 percent, or 8 cents , from the comparable period a year ago. Total revenues were $1.1 billion, an increase of $29 million, or 3 percent. Electric Operations' quarterly revenues rose $20 million, or 3 percent, to $605 million. Revenue from sales to other utilities gained 33 percent, or $24 million, largely due to a 27 percent increase in energy sales from new long-term contracts with Arizona and California utilities and increased energy sales in the secondary and short-term firm power markets. Retail electric revenues and energy sales were each off 2 percent. NERCO's revenues increased 14 percent, or $36 million, to $291 million. The total includes $58 million associated with the gain on a sale of a 25-year natural gas supply contract and $10 million related to a settlement of a coal contract dispute. These gains were partially offset by the effects of an 11 percent reduction in average natural gas prices from the same period a year ago and a $21 million reduction in precious metals' revenues. NERCO's fourth quarter 1990 revenues included liquidation of its silver inventory totaling 4.9 million ounces. Pacific Telecom's quarterly revenues were off 11 percent from last year's pace. The fourth quarter of 1990 included $50 million of initial capacity sales on the North Pacific fiber optic cable. Capacity sales in the fourth quarter of 1991 totaled $2 million. The negative effects of decreased cable capacity sales were partially offset by the favorable effects related to out-of-period revenue adjustments and increases in the number of local access lines served. Financial Services' revenues declined $6 million, or 9 percent, from the comparable period a year ago. Consolidated income from operations for the quarter rose $35 million, or 11 percent, to $347 million. Increases of $46 million at NERCO associated with the sale of the natural gas contract and a $2 million gain at Electric Operations were partially offset by declines of $12 million and $1 million, respectively, at Pacific Telecom and Financial Services. Income from operations at Pacific Telecom declined with the effect of prior-year sales of capacity on the North Pacific fiber optic cable and increased expenses in 1991 associated with maintenance of that cable, offset in part by improved performance at local and long lines' telephone operations. Consolidated net income for the quarter was $165 million, an increase of $27 million, or 20 percent, from 1990. Consolidated earnings on common stock for the quarter rose $26 million, or 20 percent, to $157 million. NERCO's earnings contribution rose $26 million on the after-tax gain from the sale of the natural gas supply contract. Electric Operations' and Pacific Telecom's earnings contributions were both lower than last year. The 4 percent, or $4 million, decline to $92 million at Electric Operations primarily relates to favorable effects in the 1990 fourth quarter of implementing a deferred tax study that reduced that year's income tax expense and the negative effect on sales from warmer winter weather in 1991. Pacific Telecom's earnings contribution was lower as a result of reduced capacity sales on the North Pacific fiber optic cable and valuation adjustments and carrying costs for 1991 associated with the terminated sale of an international telecommunications subsidiary. Losses at the Corporate level in 1991 were considerably less than those of 1990 as a result of operating losses in 1990 from a noncore business subsequently sold in 1991 and an increased level of consolidated tax benefits in 1991. The average number of common shares outstanding during the quarter rose by 9 million, or 4 percent, for the same reasons applying to the full year-to-year comparison. PACIFICORP AND ITS CONSOLIDATED SUBSIDIARIES Portland, Ore. Three Months Ended Dec. 31: 1991 1990 Earnings per common share (based on average number of shares outstanding) $0.60 $0.52 Revenues (1): Electric operations $605,000,000 $584,800,000 Mining and resource development 290,600,000 255,000,000 Intercompany coal sales (20,900,000) (23,800,000) Telecommunications 188,600,000 212,600,000 Financial services 59,100,000 64,900,000 Total $1,122,400,000 $1,093,500,000 Income from operations (1)(2): Electric operations $203,600,000 $201,700,000 Mining and resource development 93,300,000 47,400,000 Telecommunications 40,500,000 52,100,000 Financial services 9,300,000 10,100,000 Total $346,700,000 $311,300,000 Net income $164,600,000 $137,600,000 Earnings contribution on common stock (after preferred dividend require)(1)(3): Electric operations $92,100,000 $96,400,000 Mining and resource development 44,500,000 18,100,000 Telecommunications 13,900,000 21,800,000 Financial services 9,000,000 6,000,000 Corporate (2,600,000) (11,200,000) Total $156,900,000 $131,100,000 Average number of comm Portland, Ore. Twelve Months Ended Dec. 31: 1991 1990 Earnings per common share (based on average number of shares outstanding) $1.86 $1.85 Revenues (1): Electric operations $2,251,800,000 $2,184,500,000 Mining and resource development 919,600,000 827,700,000 Intercompany coal sales (80,900,000) (83,300,000) Telecommunications 724,400,000 682,900,000 Financial services 192,100,000 226,500,000 Total $4,007,000,000 $3,838,300,000 Income from operations (1)(2): Electric operations $783,000,000 $745,000,000 Mining and resource development 184,400,000 167,500,000 Telecommunications 159,600,000 154,200,000 Financial services (1,300,000) 23,800,000 Total $1,125,700,000 $1,090,500,000 Net income $507,200,000 $473,900,000 Earnings contribution on common stock (after preferred dividend requirement)(1)(3): Electric operations $346,600,000 $334,200,000 Mining and resource development 67,700,000 65,000,000 Telecommunications 69,300,000 72,100,000 Financial services 6,900,000 7,600,000 Corporate (10,000,000) (26,900,000) Total $480,500,000 $452,000,000 Average number of common shares 258,350,000 244,467,000 PACIFICORP AND ITS CONSOLIDATED SUBSIDIARIES Portland, Ore.
(1) Certain amounts from the prior year have been reclassified to
conform with the 1991 method of presentation. These reclassifications had no effect on previously reported consolidated net income. (2) Income before income taxes, interest, other nonoperating items and re-classification of intercompany profits on coal transactions. (3) Earnings contribution on common stock by segment: (a) Does not reflect elimination for interest on intercompany borrowing arrangements. Reflects allocation of Corporate interest charges. (b) Includes income taxes on a separate company basis, except Financial Services, with any benefit or detriment of consolidation reflected in Corporate. (c) Amounts are net of preferred dividend requirements and minority interest. -0- 2/12/92 /CONTACT: Mike Nelson, 503-731-2125, or Chris Hunter, 503-731-2090, both of PacifiCorp/ (PPW) CO: PacifiCorp ST: Oregon IN: UTI SU: ERN
LM -- SE005 -- 9073 02/12/92 08:08 EST
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|Date:||Feb 12, 1992|
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